METLIFE AND CITIGROUP CHINA IN JOINT VENTURE

Citigroup China and United MetLife Insurance, a China-based joint venture between the US life insurer MetLife and Shanghai Alliance Investment, are to collaborate on the setting up of an investment-based insurance product. The product, which will be sold through Citigroup’s China branches, will target middle and high-end Chinese consumers both in China and abroad, said Bob Pei, chief executive of the new venture. A minimum investment level of 100,000 yuan will apply as the fund aims to take on the domestic insurers operating in the bancassurance sector. The yuan-denominated product is still subject to some final regulatory approval, although Citigroup has recently been awarded a banking license to offer yuan-based retail business in China. The US bank has, however, not yet been granted a renminbi license and this venture has been seen as a precursor to this, once such a license is granted.